Balance sheet comparison of two companies
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- เผยแพร่เมื่อ 4 ม.ค. 2025
- How to read and analyze a balance sheet? This balance sheet tutorial is a follow-up video to the 2017 Alphabet Inc financial statement analysis series, and compares the September 30, 2018, balance sheet of Alphabet Inc (the parent company of Google) to the balance sheet of Facebook on the same date.
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As always on the Finance Storyteller channel, this video is for educational purposes only, none of the comments in this video should be interpreted as investment advice, and I do not hold any positions in either Alphabet Inc or Facebook stock. As the video is for educational purposes, please do try this at home (either for other companies, or the same companies in future quarters), and comment on your findings below!
The balance sheet is an overview of what a company owns and what a company owes at a specific point in time. What a company owns is called Assets, what a company owes is called Liabilities and Equity. The difference between current and non-current assets is whether this asset will be converted to cash within one year. The difference between current and non-current liabilities is whether the amounts are due within one year, or further out.
Let’s put the Alphabet Inc (Google) balance sheet on the left, and the Facebook balance sheet on the right. The latest balance sheets available at the time of making this video are those of September 30, 2018. The balance sheet total for Alphabet Inc on the left is $221.5 billion, for Facebook on the right $92.5 billion. So from the balance sheet perspective, Alphabet Inc is a much bigger company. Alphabet Inc (Google) was incorporated in 1998, Facebook in 2004, in terms of number of years of existence Alphabet Inc is a few years ahead of Facebook.
Let’s walk through each of the categories on the balance sheet.
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market #investing decisions. Philip delivers #financetraining in various formats: TH-cam videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
This TH-cam video was easy to understand , cogent, helpful, useful and excellent. thank You.
Thanks for the compliments, Jerry! I have several more case studies reviewing financial statements of well-known companies on my channel. Here's the link to my review of Microsoft's income statement: th-cam.com/video/Hq-44PHgAiU/w-d-xo.html
Very interesting analysis Philip! Good insights and remarks to get a better picture of both these companies. Thank you!
You're welcome! I plan to do more of these side-by-side comparisons. It was fun to research and produce this one.
More videos about financial statitistics of companies and also banks.Please.
Thanks for the support and suggestions, Ürfan!
Simple and practical! Thx
Thank you for the feedback! That's exactly what I was aiming for. 🙂 Glad it was helpful!
instant sub! love the content and your (what I would assume is a dutch) accent :) greetings from Zwitserland
Grüezi! You guessed correctly. ;-) If you liked this video, then you will probably also enjoy the recent video I made comparing Amazon and Google: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
MORE VIDEOS USING FINANCIAL STATEMENTS OF PUBLICS COMPANIES AS EXAMPLES PLEASE!!!!
Hi Basu! I love making videos using real life examples, here's the link to a playlist with lots more reviews of financial statements: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
@@TheFinanceStoryteller Thanks dude!
Can you please share balance sheet of both companies
Simply go to the investor relations websites of the respective companies, and download the annual report and/or 10-K filings. Then go to section 8 financial statements, and you will find the balance sheet (sometimes statement of financial position) there.
@@TheFinanceStoryteller ok. Thanks
Thank you so much for this video. It was very useful for me! Could you please share me the link from where you have taken these balance sheets??
Hello Ishika! Happy to hear you enjoyed the video. Please subscribe to the channel! I took the balance sheet information from the quarterly earnings releases of these companies, which you can find in the investor relations section of the corporate websites. Alternatively, you can download the 10-Q filings from the SEC website. Here's the link to several more finance case studies, reviewing the financial statements of real world companies: th-cam.com/video/PI9X5Ybek_E/w-d-xo.html
Wht the reason behind tally of balance sheet.. .. . At the end after casting balance sheet amt is same? ?? Why
Hi there! Not completely sure what your question is, but I think you are asking why the sum of what we own (on the left) is equal to the sum of what we owe (on the right). I have two suggestions for videos explaining that: the accounting equation explained th-cam.com/video/OYql7Y9NnBg/w-d-xo.html and balance sheet and income statement relationship th-cam.com/video/wZdaVEX41WQ/w-d-xo.html
Nice video
Thank you! I really enjoyed researching and making it. I have made several videos diving deeper into specific terminology of the balance sheet: th-cam.com/video/5bWodpqRSYU/w-d-xo.html Enjoy!
They clearly have way too much cash and equivalents and they don't know what to do with it. They should return some to owners because owners will spend it better than just pile it. Rigid dividend policies are just stupid.
Several tech companies don't pay any dividend at all. By the way, there are multiple ways of "returning value to shareholders": share buybacks as well as dividends. For example, Apple does both.